The footwear industry needs to focus more on developing the supportingindustry, training workers, and improving products and marketing todevelop in a sustainable manner, a seminar heard in Ho Chi Minh City onNovember 10.
Nguyen Duc Thuan, Chairman of the Vietnam Leather,Footwear and Handbag Association (Lefaso), said the footwear industryhas seen strong development, becoming the country's second or thirdlargest exporter in recent years.
Almost all leading global footwear brands like Nike, Adidas, and Puma are present in the country.
Theindustry has great potential to boost exports, especially with severalfree trade agreements the country is negotiating – like theTrans-Pacific Partnership, Vietnam-EU FTA, an FTA between Vietnam andthe Customs Union of Russia, Belarus and Kazakhstan – he said.
Butto derive advantages from such agreements, the industry should meetcertain conditions, especially local content ratio, which require it todevelop supporting industries, Thuan and many other delegates said.
DiepThanh Kiet, Lefaso's Vice Chairman, said 70 percent of the leatherneeded for footwear and handbags is imported, and only 50 percent ofmetal accessories can be sourced locally.
Thus, developing the supporting industries with a focus on leather, PVC, PU, and fabric is on the agenda, he said.
Theindustry will focus on training human resources in design and R&D,enhancing efficiency, and creating a good business environment toattract foreign investors and encourage domestic investors, he said.
Itis seeking investments, including in two leather production zones, asynthetic leather plant, a production zone for all kinds of outsoles inthe south, a small production zone for metal accessories, and a trainingcentre that can train 150-200 designers/pattern makers, 200-250production managers, 80-100 engineers, and 300-500 line leaders, hesaid.
Matt Priest, President of the Footwear Distributors andRetailers of America, said the US imported 2.32 billion pairs offootwear last year, or an average of 7.32 pairs per capita.
China accounted for 81 percent of the total and Vietnam for 10 percent, but China's share is declining, he said.
WithVietnam's exports rising sharply in the past 13 years, China's share isexpected to reduce in the next five years to 70 percent, and Vietnam'sto increase to 12 percent, he said. The ratio could be even higherbecause of the TPP, he said.
With its stable polity, a welcomingculture, competitive production advantages, "we found Vietnam an amazingplace to source for footwear," he added.
The seminar also heard that many footwear producers have shifted their production base from China to Vietnam.
OliverNg of the Ever Rite Group said his company decided to move from Chinato Vietnam because of currency stability, lower labour costs,productivity that is comparable with other countries, and proximity tothe Chinese supply chain, and to enjoy preferences offered by existingand future trade deals (ASEAN, EU's GPS, TPP).
Vietnam's exportsof footwear and handbags were worth 10.4 billion USD last year, and asimilar value had been achieved as of October 14 this year.
The seminar was organised by Lefaso in collaboration with the Footwear Distributors and Retailers of America.-VNA
Nguyen Duc Thuan, Chairman of the Vietnam Leather,Footwear and Handbag Association (Lefaso), said the footwear industryhas seen strong development, becoming the country's second or thirdlargest exporter in recent years.
Almost all leading global footwear brands like Nike, Adidas, and Puma are present in the country.
Theindustry has great potential to boost exports, especially with severalfree trade agreements the country is negotiating – like theTrans-Pacific Partnership, Vietnam-EU FTA, an FTA between Vietnam andthe Customs Union of Russia, Belarus and Kazakhstan – he said.
Butto derive advantages from such agreements, the industry should meetcertain conditions, especially local content ratio, which require it todevelop supporting industries, Thuan and many other delegates said.
DiepThanh Kiet, Lefaso's Vice Chairman, said 70 percent of the leatherneeded for footwear and handbags is imported, and only 50 percent ofmetal accessories can be sourced locally.
Thus, developing the supporting industries with a focus on leather, PVC, PU, and fabric is on the agenda, he said.
Theindustry will focus on training human resources in design and R&D,enhancing efficiency, and creating a good business environment toattract foreign investors and encourage domestic investors, he said.
Itis seeking investments, including in two leather production zones, asynthetic leather plant, a production zone for all kinds of outsoles inthe south, a small production zone for metal accessories, and a trainingcentre that can train 150-200 designers/pattern makers, 200-250production managers, 80-100 engineers, and 300-500 line leaders, hesaid.
Matt Priest, President of the Footwear Distributors andRetailers of America, said the US imported 2.32 billion pairs offootwear last year, or an average of 7.32 pairs per capita.
China accounted for 81 percent of the total and Vietnam for 10 percent, but China's share is declining, he said.
WithVietnam's exports rising sharply in the past 13 years, China's share isexpected to reduce in the next five years to 70 percent, and Vietnam'sto increase to 12 percent, he said. The ratio could be even higherbecause of the TPP, he said.
With its stable polity, a welcomingculture, competitive production advantages, "we found Vietnam an amazingplace to source for footwear," he added.
The seminar also heard that many footwear producers have shifted their production base from China to Vietnam.
OliverNg of the Ever Rite Group said his company decided to move from Chinato Vietnam because of currency stability, lower labour costs,productivity that is comparable with other countries, and proximity tothe Chinese supply chain, and to enjoy preferences offered by existingand future trade deals (ASEAN, EU's GPS, TPP).
Vietnam's exportsof footwear and handbags were worth 10.4 billion USD last year, and asimilar value had been achieved as of October 14 this year.
The seminar was organised by Lefaso in collaboration with the Footwear Distributors and Retailers of America.-VNA
